Buying a Home? « Pruitt Pulse

One thing you must know about the NEW 2007 Georgia contracts!

Most contracts written for home purchases in Georgia contain a financing contingency whereby the agreement upon the buyer obtaining a loan for at least a portion of the purchase price. Historically, the buyer had up until the date of closing to be approved for any loan to which the agreement was subject. In cases where the loan was denied within the final days before closing, there was tremendous stress, inconvenience, and financial loss for the seller.

In an effort to level the playing field, the Georgia Association of Realtors has modified its contract. The buyer now has a negotiated period of time, referred to as the Financing Contingency Period to determine if he or she has the ability to obtain the loan described int eh contract. If the buyer does not have the ability to obtain the loan, the buyer must present to the seller a letter of loan denial prior to the end of the financing contingency period. If the buyer does not provide the seller with the required letter of loan denial, the loan is deemed approved and the financing contingency is removed from the contract.

So, what does this really mean? Essentially, it is more important than ever to work with a knowledgeable and well-trained REALTOR® as well as a reputable lender. Together, your home buying team can negotiate the best terms for you, while guiding you so that you are meeting the obligations of your contract.